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The Federal Government yesterday offered for subscription 2-year savings bond at 11.41 per cent and 3-year savings bond at 12.41 per cent per annum.
The Debt Management Office (DMO), which offered the bonds on behalf of the Federal Government, announced this on Monday in a circular posted on its website.
DMO explained that the 2-year bond would be due in June 2021, while the 3-year bond would mature for repayment to investors in June 2022. It however, did not state how much was offered, but said that the maximum subscription was N50 million at N1,000 per unit, subject to a minimum subscription of N5,000 and in multiples of N1,000. The Office said that the bond was fully backed by the full faith and credit of the Federal Government with quarterly coupon payments to bondholders.
While the bonds issuance is expected to help finance the country’s budget deficit, it is also part of the Federal Government’s programme aimed at encouraging savings among low income earners.
It is also expected to help generate more income through interest, compared to the funds that would accrue to their savings accounts with banks. The circular also said that the offer would close on Friday.
